POST UTME AFE BABALOLA UNIVERSITY 2023 Commerce | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A bank's balance sheet is given by the equation Assets = Liabilities + Equity. If the bank has 100 units of assets and 50 units of liabilities, what is the minimum amount of equity it needs to have?
A. 25
B. 30
C. 35
D. 40
Question 2
A consumer buys a product for ₦1000 and sells it for ₦1200. What is the profit percentage?
A. 10%
B. 20%
C. 30%
D. 40%
Question 3
A company's articles of association may be altered by a special resolution passed by a majority of not less than _________ of the members entitled to vote.
A. 50%
B. 75%
C. 66%
D. 75.1%
Question 4
A company's cash flow statement shows a decrease in cash from operating activities and an increase in cash from investing activities. What is the likely effect on its cash balance?
A. Increase
B. Decrease
C. No change
D. Uncertain
Question 5
In a perfectly competitive market, the law of supply states that as the price of a good increases, the quantity supplied of that good will also increase. However, this increase in quantity supplied is not due to an increase in the quantity of resources used, but rather due to an increase in the efficiency of the resources used. Which of the following best describes this phenomenon?
A. Increase in the quantity of resources used
B. Increase in the efficiency of the resources used
C. Decrease in the price of the good
D. Increase in the demand for the good
Question 6
A company's risk management strategy involves diversification of its investments across various asset classes. However, the company's portfolio is heavily skewed towards stocks, which are known to be volatile. What is the primary risk associated with this strategy?
A. Systemic risk
B. Credit risk
C. Liquidity risk
D. Operational risk
Question 7
A sole trader's business is registered under which of the following?
A. Partnership
B. Sole Proprietorship
C. Company
D. Cooperative
Question 8
A _______ is a type of insurance that covers the risk of loss or damage to goods during transportation.
A. marine insurance
B. aviation insurance
C. transit insurance
D. fire insurance
Question 9
A company has a warehouse with a capacity of 10,000 units. The warehouse is currently 70% full. If the company receives an order for 5,000 units, what is the minimum number of units that must be stored in the warehouse to fulfill the order?
A. 3,500
B. 4,000
C. 4,500
D. 5,000
Question 10
A company's financial statements show a decrease in revenue and an increase in expenses. What is the likely effect on its liquidity ratio?
A. Increase
B. Decrease
C. No change
D. Uncertain
Question 11
A foreign trade agreement between two countries involves the exchange of goods worth 100 million. If the exchange rate is 1 USD = 500 Naira, what is the equivalent value of the goods in Naira?
A. ₦50 billion
B. ₦75 billion
C. ₦100 billion
D. ₦125 billion
Question 12
A company uses the Economic Order Quantity (EOQ) model to determine its optimal order quantity. If the annual demand is 10,000 units, the ordering cost is ₦50 per order, and the holding cost is ₦5 per unit per year, what is the optimal order quantity?
A. 1000
B. 5000
C. 10000
D. 20000
Question 13
A company's sole trader has a warehouse with a capacity of 10,000 units. The warehouse is currently 70% full. If the company receives an order for 5,000 units, what is the minimum number of units that must be stored in the warehouse to fulfill the order?
A. 3,500
B. 4,000
C. 4,500
D. 5,000
Question 14
A warehouse is storing 100 units of goods. The warehouse has a capacity of 200 units. If the warehouse is currently 50% full, what is the maximum number of units that can be added to the warehouse?
A. 50
B. 75
C. 100
D. 125
Question 15
A consumer has a utility function given by U = 2x + 3y, where x and y are the quantities of two goods consumed. If the consumer's budget constraint is given by 2x + 3y = 100, and the consumer wants to maximize their utility, what is the optimal quantity of good x and good y?
A. x = 20, y = 30
B. x = 30, y = 20
C. x = 40, y = 10
D. x = 50, y = 0

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